"Backup Destination (this should be a directory/NFS/Coda mount with at least twice the space of all your /home* partitions. Setting this to /home is a very bad idea.)"

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A couple of major things:
1. The purpose of creating a backup is primarily for the event of a catastrophic hard disk failure (which are more common on servers than home PCs). If your only backup is on the same hard disk that has just failed, the backup is worthless.

2. Backups should not be done on a partition with quotas as the backups will count towards that user's quota. Customers are bound to be angry when they can't figure out why they're instantly using 2,3,4... times the amount of disk space they were using.